At the concession for vehicle manufacturers in the United States, US President Donald Trump signed two administrative orders to relax his vehicle charges on Tuesday, which President Claudia Shinebam called Mexico “an additional comparative benefit”.
Changes for 25% of the fees on imported vehicles and vehicle parts A month after Trump first announced them. The US fee on imported vehicles has come into effect from April 3, while the fee on some vehicle parts is due to come into effect from May 3.
. @Potus: “To make my promise to Michigan’s big state, I stopped Joe Biden’s crazy electric vehicle order … I signed an administrative order for any company that combines its cars in the United States.” pic.twitter.com/vgtdmfo7rk
– Quick answer 47 (@rapidresponse47) April 29, 2025
The US justification for obligations is that the importation of automobiles and some vehicle parts is a threat to the national security of the United States
During a speech in Michigan on Tuesday, Trump said he would “give” vehicle manufacturers in the United States to mark for 100 days since he started his second post as US president.
“They took some parts from all over the world. I don’t want it. I want them to create their parts here. But I gave them some time,” he said.
“… This is called a little flexibility. If they don’t do this, we will give them some time before we kill them,” Trump said.
US Content in Mexico assembled vehicles Exclude 25% from feeReducing effective duty on vehicles made in Mexico. Trump’s April 29 administrative orders will not change the situation.
Trump is somewhat refunding fees in vehicle parts
One step The White House True Paper.
That offset will apply from April 3 to April 3 and April 30, 2026.
Then one year – May 1, 2026 to April 30, 2027 – Offset MSRP of a vehicle
“These percentages reflect the duty used when they owe 15% of the value of the US-Good Automobile in the first year and 10% of the value of the US-inch automobile in the second year,” the White House said.
“All other automobile imports will be more than 25% fee,” it added.
The White House said, “… the law, the existing trade agreements, such as the USMCA, the amendments to the US-Corea Free Trade Agreement, and the subsequent negotiations are not sufficient to the national security threatening by the importation of automobiles and some automobile areas.”
What does Trump’s upcoming fees mean to Mexico’s vehicle business?
After April 30, 2027 the offset does not apply to the fees in the charges, and it expects that the Trump administration will get more (or all) parts of the United States from the United States (or beliefs), although “automotive manufacturers and suppliers do not have enough time to restructure their production functions,” New York.
The US content in the areas made in Mexico last month is exempted from Trump’s announcement last month, while the White House at the time, the USMCA-implementation automobile parts will be unable to the trade secretary at the time, with the US Customs and Border Protection (CPP) to consult their non-content. ”
The latest rules of the New York Times are “exempted from imported areas from Canada and Mexico, which complies with the agreement (USMCA) in his first term.”
It is not clear whether the US non-US content in Mexican Auto Parts is under 25%-with the offsets-as first announced, the White House pointed out that the White House will not be taxed at any time.
“A manufacturer has 85% of the US in the United States.
“A manufacturer has 50% of the US in the United States.
At a press conference on Wednesday morning, President Sheinbam agreed that the US government first said that only the US content would be exempted from US fees in vehicles manufactured in Mexico.
“With the document signed yesterday, it is recognized (exempted) not only in the United States, but also in three (USMCA) countries,” he said.
However, exemptions are only applied to vehicles made in the United States, which means that vehicles manufactured in Mexico are still subject to US fees, although the rate is less than 25% because the US content is not taxed in those vehicles.
Shinebam said that the USMCA’s “recognition of the value of the USMCA” is openly referring to the USMCA-specific area of Mexican.
Steel and Aluminum charges do not apply to imports and accessories
Trump outlined the rules on “not stacking the tariffs” in his administrative order.
As a result, different fees imposed by the United States government for different reasons are not applicable to the same product in most cases (for example, although some Chinese products are subject to many fees).
“I have now decided that these fees may not have an overall effect (or on top of each other,” Trump said, “The obligatory duty rate that results in such layers exceeds what is necessary to achieve policy goals that are intended.”
As a result, importers in the United States will be exempted from paying 25% of steel and aluminum charges in vehicles and vehicle parts they bring to the country.
The New York Times said, “Mr. Trump’s payment of 25 per cent to bring cars and car parts is not subject to Mr. Trump steel and aluminum or imported from Canada and Mexico.”
Trump imposed 25% fees for all importers from Mexico in March, migrants and Fentanile to pressure the Mexican government to prevent flowing to the United States
However, two days later, he raised the obligations on the goods compliant with the USMCA.
“Products, which are subject to imports from Canada and Mexico, are no longer subjected to steel and aluminum charges,” the Times reported.
It also stated that “the rules pay and pass the rules to protect vehicle manufacturers from steel and aluminum fees.”
“… even with the concessions announced on Tuesday,” the administration policies will add thousands of dollars to car prices and endure the financial health of vehicle manufacturers and their suppliers, the Times reported.
When one of the US decision not to stack one fee on another, Shinbam demonstrates that on Wednesday “has a recognition” from the US government, “You can’t charge a double charge” for the same product.
He said that the charges of vehicles exported to the United States are “actually not 25% … 50%”, and both steel and aluminum in it are under obligations.
Shinbam said that Trump was more carefully analyzing the changes made by his vehicle fees and that Mexico was given a “comparative benefit” in other countries in March, because the US content in Mexican (and Canadian) vehicles is not subject to the 25% fee imposed on vehicles imported from other countries.
“With what released yesterday, there is an additional comparative benefit, so this is still beneficial to our country,” he said.
“Apparently, we seek more benefits and more clarity to find out what the benefits of yesterday (for Mexico) were published yesterday,” said Sheinbam.
Mexico is the main exporter of vehicles and vehicle parts to the United States. Mexico’s total vehicle exports were worth $ 193.9 billion last yearOr 31.4%of the total export revenue of Mexico. Most of that revenues came from export to the United States.
With reports from ReformOvarian The New York TimesOvarian Reoid And CNBC
